HomeMy WebLinkAboutFIN 06-17 Cd# og Report to
P I C KE R I N G Executive Committee
Report Number: FIN 06-17
Date: April 3, 2017
From: Stan Karwowski
Director, Finance & Treasurer
Subject: Low Income Seniors and Low Income Persons with Disabilities Property
Tax Grant Program
Recommendation:
1. . That Report FIN 06-17 of the Director, Finance & Treasurer regarding the Low
Income Seniors and Low Income Persons with Disabilities Property Tax Grant be
received;
2. That the attached By-law, providing for the Low Income Seniors and Low Income
Persons with Disabilities Property Tax Grant be enacted; and
3. That the appropriate City of Pickering officials be authorized to take the necessary
actions as indicated in this report.
Executive Summary: The Low Income Seniors and Low Income Persons with
Disabilities Property Tax Grant is a tool that allows Council to provide a degree of
financial assistance by ensuring that low income seniors and persons with a disability do
not face undue financial hardships. The 2017 grant amount is $200 and this represents
the estimated increase in City Share property taxes from 2014 to 2017. The $200 grant
amount would create a zero increase scenario (City Share only) for property taxes
based on Council's first term. The principles of the program (that are included in the By-
law) are based on the budget discussions and reflected in the Budget report (FIN 04-17)
Recommendation #30. The individual's property tax account will be adjusted to reflect
the grant amount and therefore, no cheque will be issued.
The communication strategy for this program will include the use of the following tools:
website, 2017 Property Tax Brochure and community page.
Financial Implications: The budgetary impact of the recommendation depends on
the number of eligible people who apply. As this is the first year of the program, staff
have conservatively provided a budget estimate of $70,000 that equates to 350 grants.
Namely, the 2017 senior and persons with a disability grant budget amount translates
into 11 grants for every 1,000 households. It is anticipated that the grant amount will
Report FIN 06-17 April 3, 2017
Subject: Low Income Seniors and Low Income Persons with Page 2
Disabilities Property Tax
probably increase for 2018. The communication, verification, and record keeping for the
grant program will be administered by the Taxation Section of the Finance Department.
Discussion: When Current Value Assessment was initially introduced in 1998, the
Province initially mandated that municipalities offer a property tax relief program to low
income seniors and low income persons with a disability to help protect them from
extreme fluctuations that could result from assessment related property tax increases.
The terms of this legislation changed in subsequent revisions and in 2003 the tax relief
was made into a discretionary requirement.
Historically, there has been very little uptake on the Regional Deferral Program, as it is
limited to assessment related tax increases over $100. Many of the applications received
did not qualify, as the $100 threshold had not been met. Furthermore, seniors and
persons with a disability, who were most in need of the tax relief, did not follow through
with the application process, as they did not wish to have the deferral placed as a lien on
their home.
Pickering Solution
Pickering's Council adopted a Notice of Motion on June 27, 2016 requesting the Region
of Durham to review and amend its property tax relief program for low income seniors
and persons with a disability. The Region reviewed Pickering's request, however, at this
current time it is not recommending a Region-wide program.
Pickering's solution or property tax relief program follows the model of other lower tier
municipalities who have provided some financial assistance to those seniors and persons
with a disability who are in need.
Pickering's low income seniors program principles are presented below:
• Individual must be 65 years of age or older
• The individual must apply every year
• Only one application per household
• The individual must have lived in Pickering for one year
• The individual must own and occupy the home as their principal residence
• The individual must be in receipt of the Guaranteed Income Supplement or GIS as
provided under the Old Age Security Act(Canada)
Pickering's low income persons with a disability program principles are presented below:
• The individual must apply every year
• Only one application per household
• The individual must have lived in Pickering for one year
• The individual must own and occupy the home as their principal residence
Report FIN 06-17 April 3, 2017
•Subject: Low Income Seniors and Low Income Persons with Page 3
Disabilities Property Tax
• The individual must be in receipt of benefits or income support as a person with a
disability under the Ontario Disability Support Program or ODSP as provided through
the Ministry of Community and Social Services of Ontario
Program's Audit Control Checks
Every year, the Federal Government will use the individual's federal income tax return to
determine if they qualify for GIS. The GIS program is based on an "income threshold"
and if your income is below the annual maximum threshold you are eligible for GIS
payments. The individual will have to provide a copy of their Federal Government issued
GIS acceptance letter to the Taxation Section.
In order to be eligible for ODSP benefits, applicants must be in financial need and meet
the program's definition of a person with a disability. The individual will have to provide a
copy of their letter from the Ministry of Community and Social Services of Ontario
informing them that they qualify for ODSP to the Pickering Taxation Section.
2018 Grant Program
ii
It is anticipated that the grant amount will,increase in 2018 based on the strategy of
keeping the City share of property taxes "capped" or frozen at 2014 levels. Any 2017
successful grant recipient will be mailed a partially completed form as part of the 2018
grant application process. The 2018 budget report will also include program statistics
such as: number of grants issued, marital status and average home assessment value.
The program statistics will be used to help "fine tune" the program for 2018.
Attachments: i
1. By-law to Establish the Low Income Seniors and Low Income Persons with
Disabilities Property Tax Grant
Prepared By: Approved/Endorsed By:
(kG744
Donna DeLong Stan Karwowski �
Supervisor, Taxation Director, Finance & Treasurer
Report FIN 06-17 April 3, 2017
Subject: Low Income Seniors and Low Income Persons with Page 4
Disabilities Property Tax
Recommended for the consideration
of Pickering City Council
ae. 13,2.017
Tony Prevedel, P.Eng.
Chief Administrative Officer
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II
ATTACHMENT# / TO REPORT c*j?
The Corporation of the City of Pickering
By-law No. /17
Being a by-law to provide relief of financial hardship for low
income seniors and low income persons with disabilities.
Whereas Subsection 365(1) of the Municipal Act, 2001, S.O.2001, c.25, as amended,
(hereinafter called the "Act"), authorizes a local municipality to pass a by-law to provide
for the cancellation, reduction or refund of taxes for eligible property owners whose taxes
are considered by Council to be unduly burdensome, as defined in the by-law; and
Whereas, the Council of The Corporation of the City of Pickering deems it desirable and
in the public interest to enact such a by-law;
Now therefore, the Council of The Corporation of the City of Pickering hereby enacts as
follows:
1. In this by-law,
(a) "owner" means a person liable to assessment, in accordance with the
provisions of the Assessment Act in respect of real property located within the
geographic boundaries of the City of Pickering
(b) "personal residence" means the residence ordinarily inhabited by the owner
(c) "spouse" has the same meaning as in Part III of the Family Law Act
(d) "City" means The Corporation of the City of Pickering
(e) "Treasurer" means the treasurer or his/her designate of The Corporation of the
City of Pickering
(f) "late payment charges" means penalties and interest applied for non-payment
of taxes in accordance with the Municipal Act, 2001 and City of Pickering By-
laws.
2. An owner is an eligible owner for the purpose of this by-law if:
(a) The person is at the time of making the application:
(i) 65 years of age or older and eligible and in receipt of the Guaranteed
Income Supplement authorized under Part II of the Old Age Security Act
(Canada); or
(ii) Eligible for and in receipt of an allowance, benefits or income support as a
person with a disability under the Ontario Disability Support Program Act,
1997; and
(b) The person has been an owner for at least one year immediately preceding the
year to which the grant applies.
3. A property is an eligible property for the purposes of this By-law if:
By-law No. Page 2
(a) For the purposes of the Assessment Act, it is classified in the residential
property class;
(b) It is the principal residence within the meaning of the Income Tax Act(Canada),
of an owner of the property or of the spouse of an owner, and
(c) Every owner of the property is either an eligible owner or the spouse of an
eligible owner.
4. Upon receipt of an application submitted in accordance with section 5, 6, 7, 8 and 9
of this By-law, the Treasurer is authorized and directed to provide eligible owner(s)
of eligible properties located within the geographic boundaries of the City of
Pickering, a tax rebate of two hundred dollars ($200.00) in respect of real property
taxes imposed by the City on the eligible property in respect of which the tax rebate
is claimed.
5. Applications shall be in a form approved by the Treasurer and shall include such
supporting material as may be required by the Treasurer.
6. Applications must be submitted by an eligible owner to the Treasurer on or before
August 18th of each year for which a tax rebate is claimed.
7. A separate application for a tax rebate is required to be completed for each year in
respect of which a rebate is claimed.
8. An application may not be submitted by an owner in respect of more than one
property in any year.
9. No more than one application may be submitted in respect of a property in any year.
10. The rebate, when approved, shall be credited to the applicant's property tax account
without interest. Late payment charges that have been applied to the applicant's
property tax account in advance of a rebate having been credited to the account
shall not be cancelled, reduced or refunded.
11. If any section or portion of this By-law is found by a court of competent jurisdiction
to be invalid, it is the intent of Council for The Corporation of the City of Pickering
that all remaining sections and portions of this By-law continue in force and effect.
12. That this By-law is to come into effect on the 11th day of April, 2017.
By-law passed this 11th day of April, 2017.
David Ryan, Mayor
Debbie Shields, Clerk